How to Invest in Walmart
Wal-Mart Stores Inc. is the leading retail company in the United States and the stock is a component of the Dow Jones Industrial Average. Wal-Mart continues to grow its business both with new stores in the United States and expansion into foreign markets. There are two possible ways to set up an investment in Wal-Mart stock, stock symbol WMT.
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Instructions
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Purchase Wal-Mart Shares Through a Stock Broker
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Open an online stock brokerage account if you do have an account with a regular or discount stock broker. Discount brokerage accounts can be opened online and stock can be bought and sold over the Internet. The Smart Money 2010 Broker Survey is linked in Resources below for a ranking of the online brokers.
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Fund your brokerage account with the money you want to invest in Wal-Mart stock. Money can be sent to an account by check, wire transfer or ACH electronic deposit. Check the broker's deposit money instructions for the mail or wire details.
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Look up the current share price of Wal-Mart, symbol WMT, using the quote screen of your brokerage account.
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Calculate the number of shares to buy, dividing your investment amount by the current share price. Most brokers allow stock purchases only in whole share amounts, so round your result to the nearest whole share.
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Buy the shares of WMT using the trade screen of your online brokerage account. The screen will require entry of the stock symbol--WMT--and the number of shares. Select market order to purchase the shares at the current market price. A limit order allows you to set the purchase price and the order will be filled if WMT reaches the limit price.
Direct Stock Purchase Plan
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Review the minimum purchase amounts and costs of Wal-Mart's direct stock purchase plan. The direct purchase plan allows investors to buy Wal-Mart shares without using a broker. The link to Wal-Mart's stock purchase plan is provided in the Resources below.
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Download and print out the purchase plan enrollment form from the Wal-Mart direct stock purchase information page.
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Complete the enrollment form and mail it to Computershare along with a check for your first investment and the $20 enrollment fee. The mailing address is listed on the upper right corner of the enrollment form. The direct purchase plan allows investment of specific dollar amounts and will purchase fractional shares as well as whole shares.
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Tips & Warnings
Compare the costs of using a discount broker with the direct purchase plan to determine which plan is best for the amounts you want to invest.
The discount broker may be the better choice if you want to trade in and out of Wal-Mart stock.
The direct purchase plan is better for automatic monthly purchases of stock.
The direct purchase plan allows free, automatic reinvestment of dividends into more shares of stock.
It is possible to lose a significant portion of your investment investing in any stock, including Wal-Mart. It is important to understand the risk and do your own research before making any stock investment.
References
Resources
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